Title: Green lending – Banks’ Application of Sustainability Aspects in Corporate Credit

Provision

Authors: Simon Dahl & Calle Jansson

Keywords: Banks, Sustainability, Lending, ESG, Relationship

Research Question: How do Swedish banks apply sustainability aspects in their

corporate lending practices?

Purpose: The purpose of this study is to describe and analyze how banks work with

sustainability, where the analytical aspect aims to identify patterns in how these financial

institutions integrate sustainability aspects into corporate lending. Furthermore, the study

aims to contribute to theory development based on collected material related to previous

research.

Method: In this academic study, the authors have adopted a qualitative methodology to

thoroughly explore the chosen subject area. The research has been characterized by an

abductive approach, enabling an iterative process between theory and empiricism. Data

collection was conducted through semi-structured interviews with a selection of seven

carefully chosen respondents from major Swedish banks. To strengthen the study’s

theoretical foundation, an extensive literature review was conducted, where existing

theories and previous research were central. In analyzing the collected material, the

authors used the qualitative Gioia-method.

Conclusion: Banks have become increasingly aware of their role in promoting

sustainable development. They have implemented strategies to achieve their

sustainability goals and integrate these into their operations. They also support their

customers in improving their sustainability performance. The banks’ commitment to

sustainability issues has increased, with a particular focus on environmental aspects in

lending. Furthermore, banks prioritize transparency in ESG reporting to reduce the

information gap and support informed financial decisions. Finally, the banks emphasize

the importance of building long-term relationships with customers.